Practical Market Research Trick for Managed Service Providers

The primary struggle for smaller MSPs is the acquisition of new customers. Sales and marketing activities are outside of the “technology” scope, and hiring an agency or dedicated salespeople is expensive. Therefore, the owners of MSPs serve as sales and marketing leaders for their firms.

MSPs are facing the question of what to offer to whom and how, which requires researching the local market where they offer their services. It can be time-consuming and complicated to understand the local needs and who are the buyers of managed services in the area. Common issues with market research are related to various cognitive biases and the desire to see things that may not be like they seem. Coming to the market with the idea that types of businesses should have a higher demand for managed services — for example, healthcare — may lead to focusing on the healthcare professionals in the area who are not even looking for managed services.

There is one nasty trick that can be done for the market research that many software startups employ. Instead of researching the market, research the successful competitors in the market. What do they sell? To whom? How?

Analyzing websites and advertisements of the successful local MSPs, attending the same events, and joining the same business associations could help understand the offerings already working on the market. And then offer a better service, extended service, or recruit those customers who are not yet using those services.